Elevating the Traveler Experience: The Art of Airport Concessions Planning

The airport retailing market size was valued at $35.2 billion in 2023. And is expected to grow about 11% over the next few years. Don't be fooled by the expected growth in passengers just yet.

The shift in omnichannel retailing and the major shift in passenger mix are poised to transform the airport retail sector as we know it. The winners and losers will be defined by those that are able shift not only what they sell but how they sell it.

In the busy world of air travel, where millions of passengers pass through airports every day, the experience inside the airport often sets the tone for their journey. Among the many factors that contribute to a smooth and enjoyable travel experience, airport concessions play a key role.

From grabbing a quick snack before a flight to enjoying some last-minute shopping, the variety and quality of concessions can significantly affect a passenger's overall satisfaction.?

This article explores the details of airport concessions planning, offering insights and practical strategies for developing a thriving concessions area. Whether you're an airport manager, a business owner, or just curious about how airports operate, this guide will provide valuable tips on how to transform your concessions space into a lively, profitable, and passenger-friendly hub.

Understanding the Airport Environment

1. Passenger Demographics: Analyze the passenger demographics to understand their needs and preferences. Consider factors like international vs. domestic travelers, business vs. leisure travelers, and peak travel times.
2. Location Analysis: Assess the foot traffic in different areas of the airport to determine the best locations for concessions. High-traffic areas such as near gates, security checkpoints, and baggage claims are prime spots.?

Market Research and Feasibility Study

1. Competitor Analysis: Look at what other airports are offering and identify gaps in your current concessions.
2. Financial Projections: Conduct a feasibility study to forecast potential revenue, costs, and profitability for each concession.

Strategic Planning

1. Diverse Offerings: Ensure a mix of retail, food & beverage, and service concessions to cater to varied passenger needs. Include local and global brands to provide a balance of familiarity and local flavor.
2. Brand Selection: Choose brands that align with the airport’s image and passenger demographics. High-end brands may appeal to international travelers, while more casual options might cater to families and budget travelers.
3. Contract Terms: Develop clear, mutually beneficial contract terms that outline expectations, responsibilities, and performance metrics.

Design and Layout

1. Space Utilization: Design the concession spaces for optimal use of available space, ensuring they are attractive and functional.
2. Aesthetics and Ambiance: Create a welcoming atmosphere with comfortable seating, good lighting, and appealing decor that enhances the passenger experience.

Implementation and Operations

1. RFP Process: Conduct a Request for Proposal (RFP) process to select concessionaires. Ensure the process is transparent and competitive.
2. Training and Support: Provide training and support to concessionaires to ensure they understand airport operations, security requirements, and customer service standards.
3. Technology Integration: Utilize technology for operations, such as point-of-sale systems, inventory management, and data analytics to track performance and customer preferences.

Marketing and Promotion

1. Cross-Promotions: Partner with airlines and travel agencies for cross-promotional opportunities. Offer exclusive deals and discounts to passengers.
2. Advertising: Use airport signage, digital displays, and social media to promote concessions. Highlight unique offerings and special promotions.

Performance Monitoring and Management

1. Regular Audits: Conduct regular audits to ensure compliance with contract terms, quality standards, and financial performance.
2. Customer Feedback: Collect and analyze customer feedback to identify areas for improvement and address issues promptly.
3. Sales Tracking: Monitor sales data to evaluate performance. Adjust marketing strategies and product offerings based on sales trends and passenger feedback.

Sustainability and Community Engagement

1. Sustainable Practices: Implement sustainable practices such as waste reduction, recycling, and energy-efficient operations. Encourage concessionaires to adopt green practices.
2. Local Engagement: Support local businesses and products to enhance the local economy and offer passengers a taste of the region. ? ?

In my experience, the most successful airport concessions plans are those that remain flexible and open to innovation. The travel industry is dynamic, and passenger needs can change rapidly. Being able to adapt, whether through introducing new technologies, updating product offerings, or reconfiguring spaces, is key to maintaining a thriving concessions program.

Creating, managing, and maintaining a successful concessions plan in an airport involves several strategic steps to ensure it meets the needs of travelers, aligns with the airport’s goals, and maximizes profitability.?

If you need expert guidance in developing or refining your airport concessions plan, reach out to me Christopher Berthelson owner and founder at Beyond Retail Group.

• Our specialized consulting services can help you create a strategic, profitable, and passenger-friendly concessions program that stands out.
• Our personalized coaching programs will help you improve your customer service standards, generate cost savings, improve your operational standards as well as help your young leaders take your organizations to the next level.

Contact us today to get started on elevating your airport’s concessions experience.

Thank You for taking the time to read my insights on Airport Retail Consessions.

Chris Berthelson Founder/Owner

Beyond Retail Group

[email protected]